Obama's High-Speed Rail Plan is a Fiscal Pipe Dream

We suppose every President is entitled to a pipe dream, but President Obama's vow in his State of the Union address that 80% of Americans should have access to high-speed rail in 25 years is a doozy. Vice President Joe Biden has followed up by proposing $53 billion in high-speed rail funding over the next six years. Seriously?

On recent evidence, this train is running in reverse. Though the Obama administration has allocated more than $10 billion for high-speed rail projects the past two years, the new Republican governors of Wisconsin and Ohio, Scott Walker and John Kasich, have rejected the federal money. They don't want to put their taxpayers on the hook for projects destined for Insolvency Junction. Florida Gov. Rick Scott is also reconsidering his state's proposed Orlando-Tampa line.

Even California, that famous incubator of pipedreams, is having second thoughts. The state has proposed an 800-mile high-speed rail plan from San Diego to San Francisco. Bay area residents are now protesting that the line will damage property values, while Central Valley farmers complain the line will ruin their land. The greater wonder is how the state will pay for a $43 billion train even as it's facing a $28 billion budget gap over the next 18 months and $20 billion annual deficits four years after that.

Two years ago California taxpayers approved a $9.95 billion bond initiative to fund the train, buying the pitch that it would create hundreds of thousands of jobs and attract 94 million riders. The state's high-speed rail authority told voters a one-way ticket from San Francisco to Los Angeles would cost $55 -- about the price of a Southwest flight. They said private equity firms were dying to invest, and that the train would operate without a public subsidy.